On October 1, CME Group, the world’s largest derivatives marketplace, announced the successful launch of its highly anticipated Bitcoin Friday Futures (BFF). The new product saw 31,498 contracts traded across two different contract weeks on its first day, making it the company’s most successful crypto futures launch to date.
According to Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, this overwhelming interest highlights the growing demand for more flexible and accessible ways to manage Bitcoin exposure:
“With more than 31,000 contracts traded on day one, Bitcoin Friday futures have become our most successful crypto futures launch ever. We are pleased to see such early customer interest and support for these new contracts, both on screen and through the block market. The smaller size of these contracts, along with a weekly Friday expiry, will provide investors with not only a more accessible way to access the bitcoin market, but will also allow them to more effectively manage their bitcoin exposure – all on a regulated exchange.“
The first block trade of Bitcoin Friday futures occurred on Sunday, September 29, executed by Galaxy and Marex, two prominent players in the digital asset trading space. Vicioso expressed satisfaction with the early momentum, noting that the smaller size of the contracts and the weekly Friday expiry offer investors a simpler way to hedge their Bitcoin positions within a regulated framework.
Harry Benchimol, Co-Head of Derivatives Engine at Marex, emphasized the significance of this launch in closing the gap between traditional financial markets and the crypto space. By offering contracts that track Bitcoin’s spot price more closely and mirror popular perpetual contracts seen on crypto platforms, CME Group’s new offering provides an effective hedging tool at a lower cost. Benchimol noted that Marex’s involvement in executing the first block trade further cements their role in boosting liquidity and driving innovation in the crypto derivatives market.
Michael Harvey, Head of Franchise Trading at Galaxy, echoed these sentiments, adding that the Bitcoin Friday futures contribute to expanding liquidity while giving investors of all sizes a useful tool for optimizing their trading strategies:
“The launch of Bitcoin Friday futures by CME Group represents a significant advancement in the broadening of crypto derivatives markets, offering investors a flexible and efficient way to manage their bitcoin exposure. These weekly contracts closely track spot prices, providing a valuable tool for growing liquidity and optimizing trading strategies for traders of all types and sizes. As we continue to bridge the gap between traditional finance and the digital asset space, initiatives like this reinforce our commitment to empowering clients with the best solutions to manage their bitcoin exposure in a transparent market.“
Each Bitcoin Friday futures contract is sized at one-fiftieth of one bitcoin and settles to the CME CF Bitcoin Reference Rate New York Variant (BRRNY). Contracts expire at 4:00 p.m. New York time every Friday, with new contracts listed every Thursday at 6:00 p.m. for the following Friday’s trade date.
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